Soaring AI infrastructure demand is fueling a major backlog buildup, with billions of dollars of orders accumulating across AI servers, data-center equipment, networking and power infrastructure.
The AI infrastructure boom is creating a powerful second-order opportunity for companies supplying the servers, racks, cooling systems, power equipment and grid infrastructure required to build AI data centers. Likewise, the billions of dollars in backlog orders are spreading beyond Nvidia Corporation (NASDAQ:NVDA) and other semiconductor companies. Dell Technologies Inc. (NYSE:DELL), Hewlett Packard Enterprise Company (NYSE:HPE), Super Micro Computer Inc. (NASDAQ:SMCI) , and GE Vernova (NYSE:GEV) are some of the companies riding the AI demand wave.
Soaring AI Infrastructure Backlog
Dell Technologies Inc. (NYSE:DELL) is benefiting directly from surging demand for AI-optimized servers. The company raised its fiscal 2027 outlook in May as data-center customers accelerated AI infrastructure spending. Early in the year, the company raised its AI server forecast, stating that its revenue from the AI server business will increase in fiscal 2027 to about $60 billion.
The revenue would be much larger than the company’s PC business, suggesting the company is transitioning from being primarily associated with PCs and conventional enterprise hardware toward being a major AI infrastructure supplier.
Hewlett Packard Enterprise Company (NYSE:HPE) isn’t just selling AI servers. Its Networking business is benefiting from the enormous networking requirements associated with AI data centers. The company reported $1.8 billion of new AI systems orders in Q2 FY2026, taking cumulative AI systems bookings to $16.4 billion. AI systems backlog reached $5.9 billion, while total AI backlog, including Networks for AI, exceeded $6.3 billion.
Super Micro Computer Inc. (NASDAQ:SMCI) has also entered a major AI infrastructure demand cycle, with its order book accelerating sharply in 2026. In June, Supermicro disclosed approximately $39 billion of orders from more than 20 customers for advanced AI servers. By July, the company said total new orders received during fiscal Q4 had exceeded $60 billion, pushing backlog to a record level.
GE Vernova (NYSE:GEV) total backlog reached $176 billion in Q2, but the more relevant AI indicator is its Electrification business, where data-center orders exceeded $5 billion year to date—already more than twice the company’s total data-center orders for 2025. Meanwhile, gas-power equipment backlog and slot reservations reached 116 GW, with GE Vernova expecting at least 125 GW under contract by year-end.
Valuation
Super Micro Computer Inc. (NASDAQ:SMCI) trades at a trailing price-to-earnings multiple of 12x, a price-to-sales multiple of 0.51x, and EV/EBITDA of 16x.
Hewlett Packard Enterprise Company (NYSE:HPE) trades at a trailing price-to-earnings multiple of 44x, a price-to-sales multiple of 1.7x, and an EV/EBITDA of 17x.
Dell Technologies Inc. (NYSE:DELL) trades at a price-to-earnings multiple of 37x, a price-to-sales multiple of 2x, and an EV/EBITDA of 21x.
On the other hand, GE Vernova (NYSE:GEV) trades at a trailing price-to-earnings multiple of 28x, price-to-sales multiple of 6x, and EV/EBITDA of 66x.
Overall, SMCI appears to be the cheapest based on sales and earnings, while HPE carries a relatively moderate sales and EV/EBITDA valuation. Dell holds a higher premium, while GE Vernova is the most richly valued based on sales and EV/EBITDA, which makes it more exposed if expected AI infrastructure growth falls short.
Risks
The surge in AI orders and backlogs is a powerful sign that the AI infrastructure boom is broadening beyond GPUs. However, large backlogs also create a meaningful set of execution, financial, and demand risks. A large order book does not automatically mean near-term sales. While investors can value companies on backlog growth, related revenue and cash flow may arrive much later.
The fact that a good chunk of AI infrastructure spending comes from a small group of hyperscalers presents significant risks. A handful of customers slowing data-center expansion, defer projects, or renegotiating orders; suppliers throughout the chain could feel the impact.
The bigger the backlog becomes, the greater the pressure on manufacturing capacity, suppliers, labor, and project execution. Similarly, rapid growth can consume cash even when reported revenue and earnings are rising.
Hedge Funds and Short Interest
Dell stands out with a low short interest of 3.45%, or 13.09 million shares sold short. GE Vernova has a relatively low short interest of 3.80%, followed by HPE at 4.92%. SMCI stands out with a substantially higher short interest of 19.25%, signifying greater investor skepticism and volatility in comparison.
Meanwhile, hedge fund holdings are supportive of the stocks’ investment thesis amid the surging backlog tied to AI infrastructure. According to Insider Monkey Database, 49 hedge funds held stakes in SMCI, as of the first quarter, up from 39 in the fourth quarter. HPE also saw its holdings increase to 58 from 56. Dell also experienced a moderate increase in hedge fund holdings from 65 to 72, and 118 hedge funds held stakes at GE Vernova, up from 115.
Two Sigma Advisors increased its stake in Dell by 740% as Citadel Investment Group cut its stake by 22% in the first quarter. Coatue Management cut its stake in GE Vernova by 24%, and AQR Capital Management increased its stake by 35%. Meanwhile, Elliott Management increased its stake in HPE by 48%, as Slate Path Capital trimmed its stake by 5%. On the other hand, Marshall Wace LLP increased its stake in SMCI by 15,613% in the first quarter as Hawk Ridge Management acquired stakes worth $52 million.
Bottom Line
The AI backlog story is broadening from a semiconductor bottleneck into a full-stack infrastructure opportunity. The key investment shift is that AI spending increasingly requires not just GPUs, but servers, networking, power generation, transformers, electrical equipment, cooling, and data-center construction. As the AI backlog is no longer only a semiconductor story, Dell, HPE, SMCI, and GE Vernova are increasingly standing out, going by their growing AI infrastructure-tied backlogs tied to spending away from GPUs. However, their investment prospects will ultimately depend on how efficiently they can convert their growing backlogs into profitable revenue and cash flow.
While we acknowledge the risk and potential of DELL, HPE, SMCI, and GEV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DELL, HPE, SMCI, and GEV and that has 10,000% upside potential, check out our report about this cheapest AI stock.
READ NEXT: Should You Buy Lockheed Martin After Its Strong Q2 Earnings Rally? and Telecom Stocks: Is Verizon (VZ) Better Than T-Mobile (TMUS)?.
Disclosure: None. Follow Insider Monkey on Google News.
